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Question
Submitted by brooklynlindsey on Tue, 2013-03-26 19:44
due on Sat, 2013-03-30 19:32
answered 1 time(s)
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Unit 2 : Unit 2: Principles of Accrual Accounting - Practice Quiz



  





1. A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters or years is the: (Points : 1)

      

      

      

      

      





2. Interim financial statements refer to financial reports: (Points : 1)

      

      

      

      

      





3. Western Company has an annual reporting period that runs from July 1st through

June 30th. Based on this information which of the following is a true statement? (Points : 1)

      

      

      

      

      





4. The accounting principle that requires revenue to be reported when earned is the: (Points : 1)

      

      

      

      

      





5. Adjusting entries: (Points : 1)

      

      

      

      

      





6. The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the: (Points : 1)

      

      

      

      





7. Which of the following accounts would not be impacted by adjusting journal entries? (Points : 1)

      

      

      

      

      





8. Prepaid expenses, depreciation, accrued expenses, unearned revenues and accrued revenues are all examples of: (Points : 1)

      

      

      

      

      





9. Which of the following is the usual final step in the accounting cycle? (Points : 1)

      

      

      

      

      





10. The asset section of a classified balance sheet usually includes: (Points : 1)

      

      

      

      

      





11. Due to an oversight, a company made no adjusting entry for accrued and unpaid employee wages of $24,000 on December 31. This oversight would: (Points : 1)

      

      

      

      





12. Profit margin is defined as: (Points : 1)

      

      

      

      

      





13. A company had $7,000,000 in net income for the year. Its net sales were $11,200,000 for the same period. Calculate its profit margin. (Points : 1)

      

      

      

      

      





14. On June 30, 2011, Apricot Co. paid $5,000 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On June 30, 2011 Apricot should record: (Points : 1)

      

      

      

      

      





15. The total amount of depreciation recorded against an asset or group of assets during the entire time the asset or assets have been used in the day to day operations of the business: (Points : 1)

      

      

      

      

      





16. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is: (Points : 1)

      

      

      

      

      

 





17. ABC Co. leased a portion of its store to another company for eight months beginning on October 1, 2011 at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which ABC Co. recorded as unearned revenue. The journal entry made by ABC Co. at year-end on December 31, 2011 would include: (Points : 1)

      

      

      

      





18. On May 1, 2011, Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2012. The cash receipt was recorded as unearned fees. At December 31, 2011, $500 of the fees had been earned. The adjusting entry on December 31, 2011 should include: (Points : 1)

      

      

      

      





19. On December 31, the balance in the Prepaid Insurance account was $4,500, which is the remaining balance of a twelve-month policy purchased on October 31 in the current year. How much did this policy originally cost? (Points : 1)

      

      

      

      

      





20. On December 31, the balance in the Prepaid Advertising account was $176,000, which is the remaining balance of a twelve-month advertising campaign purchased on August 31 in the current year. Assuming the cost is spread equally over each month how much did this advertising campaign cost in total? (Points : 1)

      

      

      

      

      





21. A trial balance prepared before any adjustments have been recorded is: (Points : 1)

      

      

      

      

      





22. On January 1, Able Company purchased equipment costing $195,000 with an estimated salvage value of $15,000, and an estimated useful life of eight years. What is the amount that should be recorded as depreciation on December 31? (Points : 1)

      

      

      

      

      





23. Based on the following information, what would be the total on the Credit side of a post closing trial balance, assuming all accounts have a normal balance?

Cash
$ 6,754
Dividends
$ 2,000
Accounts receivable
$ 13,733
Consulting fees earned
$ 13,718
Office supplies
$ 2,625
Rent expense
$ 3,673
Land
$ 37,153
Salaries expense
$ 6,642
Office equipment
$ 14,535
Telephone expense
$ 560
Accounts payable
$ 6,463
Miscellaneous expense
$ 280
Common stock
$ 54,490
Retained Earnings
?

(Points : 1)

      

      

      

      

      





24. Based on the following information, what would be the ending balance in the Retained Earnings Account, assuming all accounts have a normal balance?

Cash
$ 6,754
Dividends
$ 2,000
Accounts receivable
$ 13,733
Consulting fees earned
$ 13,718
Office supplies
$ 2,625
Rent expense
$ 3,673
Land
$ 37,153
Salaries expense
$ 6,642
Office equipment
$ 14,535
Telephone expense
$ 560
Accounts payable
$ 6,463
Miscellaneous expense
$ 280
Common stock
$ 54,490
Retained Earnings
?

(Points : 1)

      

      

      

      

      





25. Based on the following information, determine the current ratio, assuming all accounts have a normal balance?

Cash
$ 6,754
Dividends
$ 2,000
Accounts receivable
$ 13,733
Consulting fees earned
$ 13,718
Office supplies
$ 2,625
Rent expense
$ 3,673
Land
$ 37,153
Salaries expense
$ 6,642
Office equipment
$ 14,535
Telephone expense
$ 560
Accounts payable
$ 6,463
Miscellaneous expense
$ 280
Common stock
$ 54,490
Retained Earnings
?

(Points : 1)

      

      

      

      

      

Answer
Submitted by Visionwriter on Sun, 2013-09-08 18:17
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